Is having your own hedge fund good idea vs. staying as prop.

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PhiSigmaIota

Lets' say some entity wants to give you 10 mil USD to be a 50-50 partner in a new hedge fund. You will run the show. Is it worthed to leave the independency of being a prop trader and establish and run a hedge fund from scratch.. Are there any hassles, headaches where it may not be a dreamjob..
Anythoughts appreciated..
 
I manage a small hedge fund and the hassles of starting one are mind boggling. Expect to pay about 35k to get one off the ground unless you willing to do/capable of doing some of the work. Since my start up was small I did most of the work and kept the startup fees to under 1k.

If you do this and you are successful it is VERY rewarding. Your investors will treat you like a king.

If you want more information about this PM me.

Quote from PhiSigmaIota:

Lets' say some entity wants to give you 10 mil USD to be a 50-50 partner in a new hedge fund. You will run the show. Is it worthed to leave the independency of being a prop trader and establish and run a hedge fund from scratch.. Are there any hassles, headaches where it may not be a dreamjob..
Anythoughts appreciated..
More...
 
Quote from PhiSigmaIota:

Lets' say some entity wants to give you 10 mil USD to be a 50-50 partner in a new hedge fund. You will run the show. Is it worthed to leave the independency of being a prop trader and establish and run a hedge fund from scratch.. Are there any hassles, headaches where it may not be a dreamjob..
Anythoughts appreciated..
More...

Are you serious that someone is actually going to let you manage their $10m?
"independency" should be "independence"
Two periods after "dreamjob"should be one.
"Dreamjob" should be "dream job".
"Anythoughts" should be "any thoughts."
I hope you pay more attention to grammar and detail with your trading then to your posts.
And that said, you must be lucky as hell because your math and analytical skills also suck.
Unless you are trading with at least $5m, you will make much more running the hedge fund. Not to mention someone else taking all the risks, and being able to write off all of your costs to the fund.
 
Quote from osc:

Are you serious that someone is actually going to let you manage their $10m?
"independency" should be "independence"
Two periods after "dreamjob"should be one.
"Dreamjob" should be "dream job".
"Anythoughts" should be "any thoughts."
I hope you pay more attention to grammar and detail with your trading then to your posts.
More...

"then" should be "than". Let he with no grammer errors cast the first stone.
 
Quote from EricP:

"then" should be "than". Let he with no grammer errors cast the first stone.
More...

Absolutely right shmuck.
"grammer" should be "grammar".
 
Quote from osc:

Are you serious that someone is actually going to let you manage their $10m?
"independency" should be "independence"
Two periods after "dreamjob"should be one.
"Dreamjob" should be "dream job".
"Anythoughts" should be "any thoughts."
I hope you pay more attention to grammar and detail with your trading then to your posts.
And that said, you must be lucky as hell because your math and analytical skills also suck.
Unless you are trading with at least $5m, you will make much more running the hedge fund. Not to mention someone else taking all the risks, and being able to write off all of your costs to the fund.
More...
It is nice to see some sarcastic grammer teachers in this community. English is my second language and I do have scarce time to write literary masterpieces when I am trading. I do believe my message is succinct.
You should be very clairvoyant as you assessed my academic and professional credentials from my quick message.

I still do appreciate to get more feedback from sincere ET members. THX
 
10 MM is actually a really really small fund, I'd imagine in terms of liquidity it's an easy transition.

I'd probably jump on this offer if I knew my strategies were scalable. There's a lot of flexibility with having that much capital.
 
Quote from PhiSigmaIota:

Lets' say some entity wants to give you 10 mil USD to be a 50-50 partner in a new hedge fund. You will run the show. Is it worthed to leave the independency of being a prop trader and establish and run a hedge fund from scratch.. Are there any hassles, headaches where it may not be a dreamjob..
Anythoughts appreciated..
More...

If you planning on making money, it doesn't make much sense to both give away 80% plus another 50% for just $10mil. If you don't think you have a solid edge, then maybe.

I know I'm biased, but our guys can use $millions and keep 100% of their profits, it's up to them to develop their edge (with our help, of course).

Now, if it was $150 million or something, go for it, LOL.


Don
 
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